AMD expects sales for the third quarter ending September 29, 2002 will be approximately $500 million. At these reduced sales levels, the company anticipates a substantial operating loss for the quarter.
AMD’s projection made in connection with the release of its Q2 results was for Q3 sales to improve modestly compared to the $600 million in Q2.
While our flash memory business is improving and showed sequential sales growth for the second consecutive quarter, the weakness in the personal computer market continues to impact AMD, said Robert J. Rivet, AMD’s Chief Financial Officer. In the absence of any significant improvement in PC demand in the just completed quarter, we accelerated our efforts to reduce processor inventory in the PC supply chain. The aggressive actions we took to lower the total inventory and align the mix with current opportunities had a significant negative impact on our third quarter processor sales in units, revenues and ASP’s. Going into the fourth quarter, AMD and its customers are in a much-improved position to take advantage of the anticipated seasonal improvement in demand.
AMD will provide final Q3 financial results on October 16, 2002.